 "Ajit Mishra of Religare Broking says buy Wipro, Apollo Tyres, Bajaj Finserv")
Market View
The markets witnessed a volatile session following Tuesday's sharp decline but managed to close with gains of nearly half a percent. After a flat opening, selling pressure persisted during the first half; however, resilience in IT majors and a recovery in select heavyweights helped trim losses and pushed the index into positive territory. As a result, the Nifty index settled at 23,155.35, up by 0.6 per cent.
Sector-wise, IT and pharma sectors recorded decent gains, while realty and energy emerged as the top losers. Meanwhile, the broader market decline continued, with both midcap and smallcap indices shedding nearly 1.5 per cent each.
The market has been trending lower week by week, and any intermediate pause or rebound should be viewed as a shorting opportunity unless the Nifty decisively breaches the resistance zone of 23,500-23,700. On the stock-specific front, the ongoing earnings season is presenting opportunities on both sides of the trade, so traders are advised to align their positions accordingly. Additionally, it is prudent to exercise extra caution in the midcap and smallcap segments and avoid averaging into losing trades.
Stocks Recommendations
Bajaj Finserv Limited| LTP: 1743.30 | Buy | Target: 1870 | Stop-loss: 1680
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The stock has concluded its corrective phase by achieving a breakout from a double bottom pattern, accompanied by strong volumes. Since then, it has been consolidating within a narrow range, forming a buying pivot above the confluence of key moving averages. With its recent outperformance against the frontline index, we anticipate this momentum to persist. Therefore, initiating long positions at the current level can be considered.
Wipro Limited |LTP: 309.10 | Buy | Target: 335 | Stop-loss: 296
On the weekly chart, the stock has been in a steady uptrend since April 2023, reflecting a sustained bullish trajectory. It recently broke out of a bullish flag pattern, signaling a continuation of positive momentum. The volume pattern further supports this trend, with higher volumes on up days and lower volumes on down days, indicating active trader participation. In light of these factors, we recommend initiating fresh long positions in the stock.
Apollo Tyres Limited | LTP: 440.10 | Sell Fut | Target: 420 | Stop-loss: 452
Apollo Tyres has experienced a decisive breakdown from a year-long distribution pattern, accompanied by a significant increase in volumes, which amplifies the bearish sentiment. Additionally, the stock has fallen below its 100-week exponential moving average (WEMA), indicating further weakness in the trend. Given these factors, short positions can be initiated at the specified levels.
(Disclaimer: Ajit Mishra is SVP of research at Religare Broking. Views expressed are his own.)